Network switches operate at Layer 2 (data link) of the OSI model, while network routers operate at Layer 3 (network). This distinction leads to confusion about the definition and purpose of a Layer 3 switch, also called a multilayer switch.
Difference Between Layer 2 Switch and Layer 3 Switch | Difference Between Layer 3 Switch and Router
A Layer 3 switch is a specialized hardware device used in network routing. Layer 3 switches have much in common with typical routers, not just in appearance. Both can support the same routing protocols, inspect incoming packets, and make dynamic routing decisions based on the source and destination addresses inside.
One of the key advantages of a Layer 3 switch over a router is the way routing decisions are made. Layer 3 switches are less likely to introduce network latency because packets do not have to take extra steps through a router.
Layer 3 switches are designed to improve network routing performance on large local area networks, such as corporate intranets.
